autarky


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autarky

1. (esp of a political unit) a system or policy of economic self-sufficiency aimed at removing the need for imports
2. an economically self-sufficient country

autarky

or

autarchy

the practice or policy of economic self-sufficiency

Autarky

 

self-sufficiency, self-satisfaction; in the economic sense, the creation of a closed, self-sufficient economy in a separate capitalist country, leading to a break in traditional international economic ties.

In a pure form, autarky existed only in precapitalistic formations in a natural economy. Autarky as a policy is in conflict with the demands of the international division of labor. Under imperialism, when all countries are closely connected by a system of international economic relations, there are only tendencies toward autarky, arising as a result of the intensification of the contradictions of capitalism. These tendencies were most powerful during the 1930’s when, as a result of the world economic crisis of 1929–33, a break occurred in the previously existing foreign trade and other economic relationships, and countries conducted a policy of “ruining their neighbor.” In the most aggressive imperialistic countries autarky began to serve the aims of creating a relatively closed economy capable of producing all that was necessary for conducting a war under the conditions of economic blockade. Autarky was the official economic theory of Fascism. After World War II autarkic tendencies—for instance, high obstructive duties—are to some degree inherent in several closed trade economic blocs such as the European Economic Association and the European Association for Free Trade.

V. V. MOTYLEV

References in periodicals archive ?
To facilitate the modeling of the pre-euro situation as financial autarky, we first recall that southern EMU real interest rates were sizably larger than the corresponding northern rates.
In other words, when the agent faces a monopolist insurer, the insurer receives all gains from the contract and the agent receives the same value as in autarky.
Then, the factor content of trade is defined as the difference between the actual endowments in a trading equilibrium and the endowments at the Equivalent Autarky Equilibrium,
In the autarky context, this model helps to explain some of the main characteristics of structural economic change: 1) Along the path of development new manufacturing activities appear, the degree of intersectoral linkages increases and thus the input-output matrix of the economy becomes deeper (Chenery et al.
Given growing economies, there is an autarky cycle where consumption is the main driver of GDP growth while advancing and advanced economies benefit from a virtuous cycle induced by investment (Fukuda and Watanabe, 2011), Table 3 suggests generation of an autarky cycle and a virtuous cycle depends on three types of economic fluctuation: monotonic explosion (MO), explosive oscillation (EO), and damped oscillation (DO).
The table shows that revealing the relative sizes of the PPFs (production possibility frontiers) before the start of the experiment enabled improvement over autarky for most teams.
This line of thought leads to attempts to achieve autarky, economic independence, and self-sufficiency.
Definition 1: An equilibrium under autarky is a triplet {A*, r, P} that solves the system of equations comprising of the optimal occupational condition (3), the financial market clearing condition (4) and the goods market clearing condition (5).
But I am confident that the situation would be worse had India not switched its economic gears from autarky to policies that actively encouraged greater participation in the global economy.
Based on the extensive use of fanompoana, forced corvee labor, autarky allowed the Merina to embark on a unique "experiment" in industrialization in which prominent state involvement promoted large-scale and machine-based production.
OVER the past six years Syria, once a byword for proto-Soviet state control and autarky, has opened up its economy and implemented investment laws that allow foreign companies to set up shop.
Finally, the autarky equilibrium is completed by expressing the utility function of the average consumer in terms of the parameters of the model, and analysing the impacts that changes in the parameters of the model have on key variables.